10 Trends Transforming The Store

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Today’s well-informed, resourceful consumers are demanding an omnichannel retail environment that anticipates their individual wants and needs. In order to offer innovative and personalized products and services to these shoppers, retail organizations face an imperative to use customer data and insights more effectively. These smarter retailers are delivering a smarter shopping experience, creating more effective merchandising and supply networks and reducing operational costs.

In this upcoming webinar, Greg Girard, Program Director, Merchandise Strategies, from IDC Retail Insights will share insights and recommendations for merchants based on the research firm’s top 10 predictions for 2012, and where the industry stands halfway through the year in terms of those trends.

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10 Trends Transforming The Store

  1. 1. #10RetailTrends 10 Trends Transforming The StorePresented by Sponsored by #10RetailTrends
  2. 2. Welcome Webinar Attendees Type  ques)on  here   #10RetailTrends
  3. 3. Follow This Webinar On Twitter #10RetailTrends #10RetailTrends
  4. 4. About Retail TouchPointsü  Launched in 2007ü  Over 23,000 subscribersü  To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP #10RetailTrends
  5. 5. Panelists Greg Girard Sally Hartnell Program Director Marketing ManagerIDC Retail Insights IBM MODERATOR Debbie Hauss Editor-in-Chief Retail TouchPoints #10RetailTrends
  6. 6. Top Ten Trends in Omnichannel MerchandisingTechnology Strategies and Retail AnalyticsGreg Girard, Program DirectorSeptember 2012
  7. 7. Circa 1997 Circa Now© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 7
  8. 8. Readying Ourselves for What’s Coming Change “The future ain’t want it used to be.” Yogi Berra© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 8
  9. 9. #1: Retailers will hone lessons learned for profitable agility •  The Great Recession: If it didn’t kill you, you got religion… •  Analytics and optimization •  Process integrity •  Organizational alignment •  Mobile, social, local •  3600 Worldview of everything •  New strategies for the new normal (economic, social, cultural, ethnic) •  Good fortune begets innovation—Family Dollar and Dollar General •  Big box stalwarts play small ball—Walmart, Target •  Established brands change the rules of engagement—Walgreens •  Dramatic shares of CapEx for Omnichannel capabilities—Nordstrom, Macy’s •  A visionary re-invents the store in the image of the brand—Apple (JCP TBD) bigger: AMAZON | GOOGLE | FACEBOOK | EBAY © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 9
  10. 10. #2: Four pillars of the 3rd platform—big data, cloud, social, and mobile — will accelerate transformation of retailing© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 10
  11. 11. #2: Four pillars of the 3rd platform— big data, cloud, social, and mobile — will accelerate transformation of retailing New bases of competition Collaboration • Shopping apps • Living appsSocial merchant Stores as Centers3I consumers for Omnichannel•  Instrumented•  Informed Orchestration•  Interconnected • Omnichannel •  Commerce •  Transparency •  Offer Orchestration • Analytics •  Next Best Action •  Socialytics •  Collective Intelligence © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 11
  12. 12. #3 Resourceful, smarterconsumers in command:instrumented, interconnected,and informed Successful growth strategies will revolvearound consumers, not products or channels © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 12
  13. 13. #4: Omnichannel Orchestration and Optimization …O3…will define a new retail enterprise technology model © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 13
  14. 14. #5: Big Data and Analytics are the new coin of the retail realm© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 14
  15. 15. #6: Social retailers will start making better decision New Product Merchandising Marketing Channels Development © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 15
  16. 16. #6: Social retailers will start making better decision Retail Social Gnome Socialytics Insight/ Response Ladder © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 16
  17. 17. #6: Social retailers will start making better decision Socialytics Insights > Actions > Outcomes © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 17
  18. 18. #7: Retailers will struggle with transparency Consumers Competitors © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 18
  19. 19. Consumers Are Online Inside… Retailers Must Be Too© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 19
  20. 20. © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 20
  21. 21. #8 Merchandising, marketing, and operations together musttransform stores into centers of omnichannel orchestration © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 21
  22. 22. © IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 22
  23. 23. #8 Merchandising, marketing, and operations together musttransform stores into centers of omnichannel orchestration•  Accelerate investment in: •  Passive and active customer check-in •  Personalized self-directed shopping •  Interactive and transactional digital signage •  Augmented reality in a few instances •  Omnichannel Points of Commerce Platform •  Personalized customer offer orchestration •  Customer order orchestration •  Endless aisle assortment localization strategies •  Wifi for all•  Omnichannel Customer Experience Management, a mash-up of … •  Associate enablement •  Web experience management •  Content management •  Merchandising—assortment, price, space strategies •  Marketing and offer orchestration •  Order and fulfillment orchestration© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 23
  24. 24. #8 Merchandising, marketing, and operations together musttransform stores into centers of omnichannel orchestration•  Accelerate investment in: •  Passive and active customer check-in •  Personalized self-directed shopping •  Interactive and transactional digital signage •  Augmented reality in a few instances •  Omnichannel Points of Commerce Platform •  Personalized customer offer orchestration •  Customer order orchestration •  Endless aisle assortment localization strategies •  Wifi for all•  Omnichannel Customer Experience Management, a mash-up of … •  Associate enablement •  Web experience management •  Content management •  Merchandising—assortment, price, space strategies •  Marketing and offer orchestration •  Order and fulfillment orchestration© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 24
  25. 25. #9: Trends 1-8 are driving merchandising / marketing cooperation Product centric RRM Customer centric RRM 2.0 1.0 has matured is emerging (Public Prices) (Private Promotions)© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 25
  26. 26. #10 Retailers are engaging consumers in “Beyond & Between Commerce”© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 26
  27. 27. #10 Retailers are engaging consumers in “Beyond & Between Commerce” Use, maintain, and repair hardlines Apply health and beauty products Take supplements and medications Lifestyle Apps: Lives, roles, jobs, community, school…. Tailor, wear, accessorize, and care for Consume media apparel and footwear Prepare and consume food and beverages© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 27
  28. 28. Essential Guidance •  Four forces….mobile | social | big data | cloud …your choice •  Four Horsemen of Your Apocalypse Four Aces in Your Hand •  Customer…context and relevance...foundation of engagement •  Stores – the new focal point of omnichannel competition •  Omnichannel…real-time…analytics…excellence in the ordinary •  O3…core competency…on the 3rd Platform© IDC Retail Insights. Reproduction is forbidden unless authorized. All rights reserved. Page 28
  29. 29. Meeting Retail Industry Imperatives without Breaking the Bank Sally Hartnell IBM, Marketing Manager September 26, 2012 © 20122011 Corporation © IBM IBM Corporation
  30. 30. Responding to the needs of the smarter consumer requiresretailers to adopt three strategic imperatives. 1) Deliver a 3) Drive efficiencysmarter shopping and reduce cost of experience operations Retail 2) Tune merchandise and supply networks to customer demands © 20122011 Corporation © IBM IBM Corporation
  31. 31. A smarter shopping experience is personalized, consistent,and relevant to the customer.Ø Develop intelligence on customer wants and needsØ Empower customers to use their technology of choiceØ Ensure consistent, timely, and relevant interactions © 20122011 Corporation © IBM IBM Corporation
  32. 32. What if … … faster insight into information assets could help you increase sales and gain competitive position? Do I have enough inventory in all locations to last until the end of the promotion? What percentage of items How long will it take my vendors purchased today were on to fulfill these orders based on promotion? current inventory levels? What are my top 10 selling Should I offer free shipping to this items today and how are customer? they trending? What items should I offer this customer Are slow-selling items priced based on her past purchases? higher than my competitors?32 © 20122011 Corporation © IBM IBM Corporation
  33. 33. Skechers USA Accelerates Sales and Inventory Decisions What’s smart? •  Average acceleration of warehouse queries by 450X •  No tuning or application changes to improve warehouse performance •  Plugs into existing environment Smarter Business Outcomes •  Rapid insight into inventory optimizes revenue opportunities •  Agility to quickly respond to pricing and other variables enhances competitive position“Our complex inventory and sales reports took anywhere from a few minutes to 45 minutes to run. When wetested those same queries with Informix Warehouse Accelerator, they ran in 2 to 4 seconds each! Thatacceleration ranges from 60 to 1400 times faster, with an average acceleration of 465 times, all without anyindex or cube building, query tuning or application changes. "- Ashutosh Khunte , Senior Database Architect, Skechers USA © 20122011 Corporation © IBM IBM Corporation
  34. 34. IBM Informix Warehouse Accelerator for Smarter Business IntelligenceWhat is it? How is it different?IWA leverages an in-memory, columnar Ø Performance. Unprecedentedapproach to process very complex response times with 100+ fasterqueries at real-time speeds, without performance than traditionalrequiring any tuning or changes to warehousesbusiness applications. Ø Transparency. Keep using your front- end analysis and reporting tools without having to make any changes. Ø Simplified administration. Appliance- like hands-free operations, eliminating database tuning tasks. Ø Software only. Optimized for Linux on the commodity hardware of your choice. Ø Plugs into existing environments. NoAnalysis at the Speed of Thought “rip-and-replace” required! © 20122011 Corporation © IBM IBM Corporation
  35. 35. Smarter RetailOne of world’s largest retailers enables managers across thousands ofstores to have instant insight into consumer buying behavior for fasterbusiness decisions. What’s smart? •  500+ managers get answers to complex queries in < 10 seconds •  No tuning or application changes to improve warehouse performance Smarter Business Outcomes •  Rapid insight into promotion items and inventories optimizes revenue opportunities •  Agility to quickly respond to pricing and Powered  by  Informix   other variables enhances competitive position © 20122011 Corporation © IBM IBM Corporation
  36. 36. What if … … your information assets were part of an intelligent network, always available and easily managed, regardless of global locations or IT platforms? How do I meet Service Level Agreements when I need to do regular maintenance? We want to track more product I need to upgrade my data attributes but isn’t it hard to centers but I don’t have staff change all the product tables at at each location. every location? Our US stores change prices We just acquired a chain of stores more often than our Canadian who are standardized on Windows. stores. How do I easily make We use Linux. How do I avoid IT changes just to US stores? expenditures and vendor lock-in? How do I keep product and customer data current when the data is replicated all over the world?36 © 20122011 Corporation © IBM IBM Corporation
  37. 37. Smarter RetailMcLEOD RUSSEL INDIA LIMITED, the world’s largest tea producer,eliminates downtime in the tea trade. What’s smart? •  Enables 100 percent data availability to critical data across 300+ endpoints •  Delivers 90 percent faster database performance •  Return on investment within a year Smarter Business Outcomes •  Accurate tracking of harvest, production and sales of 220+ million pounds of tea per year Powered  by  Informix   •  Satisfying customers with 24x7 service availability“Previously, an outage could take us up to three days to recover from, and in that time, we’d belosing data and business. Since upgrading our databases to IBM Informix, we have had zerodowntime.” - Shantanu Das, Deputy Manager-IT, McLEOD RUSSEL INDIA LIMITED © 20122011 Corporation © IBM IBM Corporation
  38. 38. Optimize Retail Networks with Informix Flexible Grid An easy to manage clustered environmentfor High-Availability, Scalability & Workload Balance Six 9’s of availability – Redistribute work Administer Mix hardware zero downtime locally, regionally, the grid and versions for planned globally as if it were a of OS and Informix maintenance single server"This is a real innovation that lowers our operating costs with less investmentin hardware, and lets us leverage existing investments and resources.“Hector De Santiago Ramirez, IT Infrastructure Manager, DHL © 20122011 Corporation © IBM IBM Corporation
  39. 39. Informix Flexible Grid for Smarter Retail Store3   Home   Office   Store2   Store4   Store1   Store5   Store6   Store7   © 20122011 Corporation © IBM IBM Corporation
  40. 40. Smarter merchandise assortments and supply networks areessential to serving the smarter consumer.Ø Use customer insight to tailor assortments and product ranges to local marketsØ Tune stock allocations to local or fluctuating demandØ Design flexible supply networks to shift stock according to customer demand © 20122011 Corporation © IBM IBM Corporation
  41. 41. IBM Software ColCerámica Reduces Time-to-Market by 20 Percent What’s smart? •  50% faster performance when tested against competitive databases •  Only .5 DBA needed to administer 16 sites Smarter Business Outcomes •  Reduced time-to-market for order delivery by 20 percent •  Improved supply chain management across 16 distribution centers •  Lower operational costs with Increased operational efficiency and reduced costs“We can now look at the distribution chain across all our centers and closely monitor the detail ofeach production step. It has helped reduce time-to-market for products by 20 percent.”- Saul Vargas, Senior Database Admiinistrator, ColCerámica, A Corona Group Company IMP14439-USEN-00 41 © 20122011 Corporation © IBM IBM Corporation
  42. 42. Improving operations and reducing costs are essentialingredients to compete for the smarter consumer’s business.Ø Do More, Spend Less Time and Money §  Higher performance means fewer servers – and less space, power, cooling §  Heterogeneous grid means using your existing HW and avoiding vendor lock-in §  Automatically sense and respond to changes without intervention • Self Maintaining means you avoid over provisioning or idle resources • Self Configuring and Self Healing mean maximizing DBA resources © 20122011 Corporation © IBM IBM Corporation
  43. 43. How can Cloud Deployments Help Retailers today? Doing more with less Why act now? Reduce capital and operational expenditures Informix is only database that can be utilized and§  Time to roll out new solutions takes provisioned in the cloud on heterogeneous, too long commodity hardware§  Maintenance and operation of Reducing risk existing application landscape are Ensure the right levels of security and resiliency too expensive across all business data and processes§  Retailers are facing major strategic Informix provides a single console to easily decisions with regard to provision only what is needed, when and where infrastructure it’s needed, across the entire environment§  Retailers need to risk and Higher quality services investment while testing new Improve quality of services and deliver new markets. services that help the business grow and reduce§  Transformation activities of costs acquisitions are behind schedule Informix provides around-the-clock services with and synergies are not being realized virtually NO downtime, even for routine maintenance and upgrades§  Data center transformation is Breakthrough agility needed to support the future generation of capabilities. Increase ability to quickly deliver new services while containing costs and managing risk Informix manages workload utilization cost effectively for both OLTP and BI applications 43 © 20122011 Corporation © IBM IBM Corporation
  44. 44. A System for Smarter Retailing 1) Deliver a 3) Drive efficiencysmarter shopping and reduce cost of experience operations Retail 2) Tune merchandise and supply networks to customer demands © 20122011 Corporation © IBM IBM Corporation
  45. 45. For More InformationØ Learn more about IBM Informix at www.ibm.com/informix §  Learn about the Informix Warehouse Accelerator at www.ibm.com/informix/warehouse §  Learn about Informix Flexible Grid at www.ibm.com/informix/flexgridØ Read the case studies §  McLeod Russel India Limited (click on title or go to short URL: ibm.co/UqcrzE) §  Colceramica (click on title or go to short URL: ibm.co/SeuzdI)Ø Test drive a free trial of IBM Informix Ultimate Warehouse Edition (click on title or go to short URL: ibm.co/SgtqGK) © 20122011 Corporation © IBM IBM Corporation
  46. 46. © 20122011 Corporation © IBM IBM Corporation
  47. 47. Q&A // Submit Your Questions Type  ques)on  here   #10RetailTrends
  48. 48. Q&A Greg Girard Sally Hartnell Program Director Marketing ManagerIDC Retail Insights IBM #10RetailTrends
  49. 49. Thank You For Attending This Webinar You can download this presentation at: http://rtou.ch/10retailtrends #10RetailTrends

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